California Committee Unanimously Passes Anti-Sweepstakes Bill

State legislature advances measure to prohibit sweepstakes casino operations despite industry opposition

The California Public Safety Committee unanimously approved Assembly Bill 831 on July 15. Light & Wonder Global Head of Government Affairs Howard Glaser confirmed the committee’s decision.

The legislation previously passed the state’s Senate Governmental Organisation Committee on July 8. This represents the second major committee approval for the anti-sweepstakes measure.

Several industry organisations have formed opposition coalitions. The Social and Promotional Games Association (SPGA) and Social Gaming Leadership Alliance (SGLA) both oppose the bill.

The American Civil Liberties Union joined the opposition on July 14. The Association of National Advertisers also expressed concerns about the legislation.

Governor Gavin Newsom holds final authority over the bill. His signature would be required before AB 831 becomes law.

The measure aims to clarify California’s gambling laws regarding sweepstakes operations. Current regulations create legal grey areas that lawmakers want to eliminate.

California Attorney General Rob Bonta issued a statement related to this matter on July 3. He declared daily fantasy sports contests fall under the state’s definition of gaming and are therefore illegal.

Industry groups argue the bill could have unintended consequences. The SPGA stated the legislation might affect “lawful promotional practices without offering clear consumer protections.”

The diverse opposition coalition reflects broad concerns about regulatory overreach. Civil liberties advocates, businesses, and industry groups have united in opposition to the measure.

The legislation prohibits the operation of sweepstakes casinos throughout the state of California. This would shut down existing sweepstakes gaming operations in the state.

The bill began as unrelated legislation in May 2024. The California Senate added anti-sweepstakes language as an amendment in June.

AB 831 targets businesses operating sweepstakes-style casino games. These operations currently exist in legal grey areas across California.

The legislation represents an effort to eliminate confusion about legal gaming activities. Supporters want clear distinctions between legal and illegal gambling operations.

The legislative session continues until September 12. Bills can carry over into the 2026 session if necessary.

The unanimous committee approval indicates strong legislative support. Industry groups face significant challenges in preventing the bill’s passage.

If enacted, sweepstakes casino operators would be required to cease their California operations. This could force businesses to relocate or close entirely.

The bill’s success might influence other states to pursue similar legislation. California often sets precedents for gaming regulation across the United States.

Industry groups continue lobbying efforts against the measure. They’re working to modify or defeat the bill before it reaches the governor.

The opposition coalition emphasises concerns about broader implications. They argue the legislation could affect legitimate promotional activities beyond sweepstakes casinos.

Current sweepstakes operators face uncertainty about their business models. The legislative process will determine whether these operations can continue in California.

Have you enjoyed the article?

Link Copied